Think twice as that second home won’t save much tax

TNN | Feb 2, 2017, 06.01 AM IST

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(Representative Image)(Representative Image)
While the Budget has let sellers of immovable property claim long-term capital gains after two years instead of the earlier three, it has discouraged investment in the housing sector for rental income by taking away a benefit provided on buying a second house.

Tax breaks on interest paid on rented homes (whether first or second) have now been capped at Rs 2 lakh a year. So far, the entire payment of interest on home loan taken to buy a house for investment purpose was allowed to be set off from the gross income. The only condition to avail the facility was that the rental income was included in the total income.

In fact, this provision will take away a major avenue to avoid paying taxes by creating assets. At present, the interest cost of a house is around 9% of capital value, while rental income is at best 2% of capital value. Therefore, the investor gets a deduction of almost 7% of capital value from taxable income. If the investor is in 30% tax bracket, the saving is over 2% of capital value each year.

In fact, a senior CA pointed out that this would be a major setback for high-net worth individuals who have invested in real estate. He felt that even though the additional interest -above Rs 2 lakh paid during the year -can be set off in the next eight assessment years, this won’t be of much use as the interest payments would mount every year.

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great article………………………………………………. and news give me some points………………………….Manoj singh Pharshwal

There was some reason for cheer though. The Budget has reduced holding period for property from three years to two years. Now if you sell it after two years, the profit will be taxed at 20% after indexation. Indexation takes into account the inflation during the holding period and accordingly adjusts the purchase price, thereby reducing the tax burden for the seller.

For those who want to sell their ancestral houses, the base year for indexation will now be taken as 2001, instead of 1981. This will inflate the base price for those houses which were purchased earlier. With the increase in base price, the net capital gains will reduce, and so the tax liability will come down. This provision will enable investors to book profit faster.

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source”cnbc”

Think twice as that second home won’t save much tax

TNN | Feb 2, 2017, 06.01 AM IST

7 Comments

(Representative Image)(Representative Image)
While the Budget has let sellers of immovable property claim long-term capital gains after two years instead of the earlier three, it has discouraged investment in the housing sector for rental income by taking away a benefit provided on buying a second house.

Tax breaks on interest paid on rented homes (whether first or second) have now been capped at Rs 2 lakh a year. So far, the entire payment of interest on home loan taken to buy a house for investment purpose was allowed to be set off from the gross income. The only condition to avail the facility was that the rental income was included in the total income.

In fact, this provision will take away a major avenue to avoid paying taxes by creating assets. At present, the interest cost of a house is around 9% of capital value, while rental income is at best 2% of capital value. Therefore, the investor gets a deduction of almost 7% of capital value from taxable income. If the investor is in 30% tax bracket, the saving is over 2% of capital value each year.

In fact, a senior CA pointed out that this would be a major setback for high-net worth individuals who have invested in real estate. He felt that even though the additional interest -above Rs 2 lakh paid during the year -can be set off in the next eight assessment years, this won’t be of much use as the interest payments would mount every year.

Latest Comment

great article………………………………………………. and news give me some points………………………….Manoj singh Pharshwal

There was some reason for cheer though. The Budget has reduced holding period for property from three years to two years. Now if you sell it after two years, the profit will be taxed at 20% after indexation. Indexation takes into account the inflation during the holding period and accordingly adjusts the purchase price, thereby reducing the tax burden for the seller.

For those who want to sell their ancestral houses, the base year for indexation will now be taken as 2001, instead of 1981. This will inflate the base price for those houses which were purchased earlier. With the increase in base price, the net capital gains will reduce, and so the tax liability will come down. This provision will enable investors to book profit faster.

source”cnbc”

Uttar Pradesh developers give mixed reactions over union budget

Representative image.Representative image.
LUCKNOW: Real estate playersand stakeholders have different viewpoints on the union budget. While some welcomed the latest measures announced by the union government to boost the industry, some of them found it lacking. Industry players also highlighted slow execution of government policies in Uttar Pradesh.

Though everybody welcomed the takeaways government offered to builders undertaking affordable projects, they also pointed out how they will have to pay up tax on notional rent on unsold inventory within a year. “The sector has remained extremely weak for three years. More was needed. Focus on just affordable housing is not enough,” said Khalid Masood, joint managing director Shalimar Corp Ltd who dubbed the budget as lacking.

Chief managing director of Paarth Infrabuild Pvt Ltd, PN Mishra said, “Every year sops are announced for affordable housing. But nothing improves on the ground. We have undertaken two affordable projects in Allahabad and Lucknow. Though we have completed the formalities, we are yet to get benefits from government. Government should work on effective execution.”

But CREDAI UP president and chairman of Eldeco group was hopeful. “Very limited number of units below Rs 20 lakh are available in the city at present. A lot of families do not prefer to stay in government schemes. With easy financing to developers doing affordable buildings, we will be able to supply units in the range of Rs 15 lakh to Rs 20 lakh,” said Garg.

A body of a man who could not be identified has been taken out from under the debris. The district magistrate of Kanpur said that as per the statements of labourers who were rescued, there were a total of 50 of them working on the site and going by the statements 26 more could be trapped under the debris

source”cnbc”

TN to add 50,000 acres for industrial land bank

CHENNAI: Facing shortage of space to setup industries, the State Industries Promotion Corporation of Tamilnadu Ltd (SIPCOT) is eyeing on adding 50,000 acres to its land bank including those in the peripheries of Chennai.

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Addressing the gathering on the occasion of a leadership session on “progressive Chennai: advancing success in an evolving market” organised by CREDAI Chennai and JLL here on Saturday, industries department secretary Vikram Kapur said that SIPCOT has allocated 20,000 acres of the available 24,000 acres of land to the industries. “Land has been biggest a constrain and most of the land provided through SIPCOT has already been occupied … We are continuously expanding our land bank and the target is to develop an additional land bank of 50,000 acres some of which will also come in Chennai and peri-urban area because this is where the real industrial activity is happening,” he said.

In a bid to spur industrial growth across the state, the government is developing two major corridors including the Chennai – Kanyakumari corridor. The proposed corridor will comprise of a first-of-its-kind nodes, which will have exclusive planning authorities and Special Purpose Vehicles to provide necessary infrastructure. “It is a new approach, where rather than industries running to various agencies, we will be creating a mechanism for all planning approvals such as masterplans and plan approvals will be given by a dedicated authority,” he said.

source”cnbc”

Maharashtra government appoints committee to frame guidelines for improving new colleges and courses

In order to bring up new colleges, courses, additional divisions and satellite centres, an eight-member committee has been appointed by the state government.

Guidelines to be framed for improving new colleges and courses

Guidelines to be framed for improving new colleges and courses

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  • Delhi Nursery Admissions: HC allows admission process to go on
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In order to bring up new colleges, courses, additional divisions and satellite centres, an eight-member committee has been appointed by the state government to frame clear and detailed guidelines and norms for the same. The new norms which this panel will form will be followed by the universities and department of higher and technical Education for approving new colleges and courses.

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As per an Indian Express report, Dr RS Mali, former Vice Chancellor of North Maharashtra University in Jangan will head the committee. It will study the old norms in detail before framing new guidelines.

It is expected to submit the draft to the state government by February 25.

The norms of sanctioning new colleges, courses, curriculums and additional divisions have been specified under section 81, 82 and 83 of Maharashtra Universities Act 1994. The same has been specified in the amended Maharashtra Public Universities Act 2016.

(Read: ‘Curb corporal punishment in schools’, Menaka Gandhi writes to HRD ministry)

Need for an expert panel:

“Even though norms and guidelines about sanctioning new colleges existed in the old act as well as the new one, the state government wanted an expert panel to study these guidelines and make them stringent to raise the quality of education across the state. Approving new colleges will not be a simple affair anymore,” said principal of a well known college in Mumbai and one of the members of the committee.

Approval of new colleges has been hanging fire for quite a long time. Experts have often alleged that approval of colleges without proper scrutiny has been increasing the burden on universities.

source”cnbc”

‘Curb corporal punishment in schools’, Menaka Gandhi writes to HRD ministry

After the increasing cases of corporal punishments came into limelight, Maneka Gandhi has written to HRD Minister Prakash Javadekar in order to curb such punishments in schools.

Need to curb corporal punishment in schools

Need to curb corporal punishment in schools

  • Delhi Nursery Admissions: HC allows admission process to go on
  • Shiamak Davar has a message for CBSE Board aspirants!
  • Dead rat found in midday meal, 9 admitted to hospital
  • Bihar Intermediate Exams: 360 students expelled for cheating

After the increasing cases of corporal punishments came into limelight, the Union Women and Child Development Minister Maneka Gandhi has written to Human Resource Development (HRD) Minister Prakash Javadekar on the requirements to curb such punishment in schools, urging him to direct them to follow the national guidelines on the issue.

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Girls punished in a ‘derogatory’ manner:

A recent disturbing incident was reported by the media about a principal of a government school in eastern Uttar Pradesh, who punished girls for not memorising the Sanskrit shlokas and forced them to run on the playground without their skirts.

According to an official statement, Maneka has asked the HRD Ministry for widespread circulation and implementation of the Guidelines for Elimination of Corporal Punishment (GECP) prepared by the National Commission for Protection of Child Rights (NCPCR).

(Read:This 21-year-old Delhi boy got a Rs 1.25 crore placement offer from Uber)

The guidelines:

The guidelines directed by the apex body for child rights in the country recommend formation of “Special Monitoring Cells” in schools to look into cases of physical punishment or harassment of children and prepare annual audit reports on complaints of physical punishment, harassment and discrimination.

As per the Right to Education Act, an act of “physical punishment or mental harassment” inflicted on a child will attract disciplinary action.

source”cnbc”

Delhi,Nursery,Admissions:,HC,allows,admission,process,to,go,on

Maintaining that the order passed by the single judge was “totally wrong”, “erroneous” and “against the law”, the Delhi government sought a stay on Thursday on the operation of the interim order

Delhi Nursery admissions

Delhi Nursery admissions

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The Delhi High Court today, February 17 allowed 298 private unaided schools to go ahead with the nursery admission process but said that it will be subject to the final outcome of the city government’s appeal on the issue.

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A bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal, which was hearing the Delhi government’s appeal against a single judge’s interim order that had stayed its nursery admission directive on the neighbourhood criterion, said that the entire process to admit children will be subject to the final outcome of the matter.

“Having regard to the fact that the admission process is already been in operation, it would not be proper to stop it.

“We, however, make it clear that whatever steps have been taken by the parties will be subject to the final outcome of the appeal that is pending,” the bench said.

“We will examine the issue. Meanwhile, a copy of the petition be served on the respondents (including two school associations and the parents),” the bench said and fixed the matter for further consideration on February 22.

It also sought the response of the two school associations and the parents on the Delhi government’s appeal in the case.

Additional Solicitor General (ASG) Sanjay Jain, appearing for the Directorate of Education (DoE), submitted that in the absence of the neighbourhood criterion, schools will accept admission in an arbitrary and opaque manner, and even justify charging exorbitant fees from the parents.

Maintaining that the order passed by the single judge was “totally wrong”, “erroneous” and “against the law”, the Delhi government sought a stay on the operation of the interim order.

In two directives on December 19, 2016 and January 7, the Delhi government had made it compulsory for the 298 private schools built on Delhi Development Authority land to admit children for nursery who live in that neighbourbood or stay within a certain distance from the school.

Ordering an interim stay of the January 7 notification till the final disposal of the pleas challenging the Delhi government’s order, Justice Manmohan had earlier said that “a student’s educational fate can’t be relegated to only his/her position on a map” and had termed the criterion as “arbitrary and discriminatory”.

The school groups had alleged that the Delhi government had “discriminated” among schools as the neighbourhood criteria had been applied against only 298 schools and not been made mandatory for 1,400 other schools in the city.

source”cnbc”

Insecure Android apps put connected cars at risk

20160224 stock mwc freeway cars traffic barcelona

Android applications that allow millions of car owners to remotely locate and unlock their vehicles are missing security features that could prevent tampering by hackers.

Researchers from antivirus vendor Kaspersky Lab took seven of the most popular Android apps that accompany connected cars from various manufacturers and analyzed them from the perspective of a compromised Android device. The apps and manufacturers have not been named.

The researchers looked at whether such apps use any of the available countermeasures that would make it hard for attackers to hijack them when the devices they’re installed on are infected with malware. Other types of applications, such as banking apps, have such protections.

The analysis revealed that none of the tested applications used code obfuscation to make it harder for attackers to reverse engineer them and none of them used code integrity checks to prevent malicious manipulation.

Two applications didn’t encrypt the login credentials stored locally and four encrypted only the password. None of the apps checked if the devices they’re running on are rooted, which could indicate that they’re insecure and possibly compromised.

Finally, none of the tested applications used overlay protections to prevent other apps from drawing over their screens. There are malware apps that display fake log-in screens on top of other apps in order to trick users to expose their log-in credentials.

While compromising connected car apps might not directly enable theft, it could make it easier for would-be thieves. Most such apps, or the credentials they store, can be used to remotely unlock the vehicle and disable its alarm system.

“Also, the risks should not be limited to mere car theft,” the Kaspersky researchers said in a blog post. “Accessing the car and deliberate tampering with its elements may lead to road accidents, injuries, or death.”

While manufacturers are rushing to add smart features to cars that are meant to improve the experience for car owners, they tend to focus more on securing the back-end infrastructure and the communications channels. However, the Kaspersky researchers warn that client-side code, such as the accompanying mobile apps, should not be ignored as it’s the easiest target for attackers and most likely the most vulnerable spot.

“Being an expensive thing, a car requires an approach to security that is no less meticulous than that of a bank account,” the researchers said.

 source”cnbc”

Microsoft’s decision to scrap February security updates unnerves patch experts

windows 10 wallpaper logo

Microsoft this week canceled February’s slate of security updates for Windows and its other products, including Office, just a day after saying that the fixes would only be delayed.

Patch experts struggled with the decision, pointing out that known vulnerabilities will go unpatched and that IT planning had been disrupted.

“I was shocked,” said Chris Goettl, product manager at patch management vendor Ivanti, formerly Shavlik. “I was really expecting [the patches to release] next week.”

On Tuesday, just hours before the month’s Patch Tuesday updates were to appear, Microsoft announced a delay. “We discovered a last-minute issue that could impact some customers and was not resolved in time for our planned updates today,” the company said at the time. The implication was that February’s security fixes would ship as soon as that “last-minute issue” was resolved.

But in a Wednesday revision to the original announcement, Microsoft said, “We will deliver updates as part of the planned March Update Tuesday, March 14, 2017.” (Microsoft prefers the label “Update Tuesday” to the more universal “Patch Tuesday.”)

Skipping a month’s update slate was unprecedented. Although Microsoft has not issued updates on four Patch Tuesdays since the 2003 debut of regularly-scheduled updates—most recently in March 2007—those were instances when no patches had been prepared. It has never missed a month when there were clearly fixes prepped and ready to go.

“This isn’t like before when no updates meant nothing was ready,” said Susan Bradley, the moderator of the PatchMangement.org mailing list, where business IT administrators discuss update tradecraft. “Patches were ready. They just—for whatever unknown reason—couldn’t be delivered.” Bradley also writes about Microsoft’s patching processes for the Windows Secrets newsletter.

Microsoft has not said what prompted the delay, or what triggered the expansion of that into the month’s cancelation.

Without a declaration from the Redmond, Wash. company, speculation about the cause has been rife. Some believed that a single faulty patch had shelved them all, but that made little sense, Goettl said Wednesday when he pointed out that Office patches are delivered separately from those addressing vulnerabilities in Windows. If a single patch for Windows held back the Windows cumulative update, the Office update should have remained viable.

Two days ago, Goettl argued that the extent of the cancelation—all updates—hinted at problems with the company’s update service infrastructure. In an interview today, he stuck by his guns. “This is something bigger than a single patch,” Goettl said, “something with Windows Update or the update replication process.”

Bradley decried the lack of information from Microsoft, which, she said, only fueled conjecture, including her own. “My gut tells me something was up with the [update] publishing engine, [but] again merely speculation,” she said.

The experts agreed that the cancelation of February’s updates will affect Windows customers, but not on the extent of the disruption. “I think there will be minor disruptions, along the lines of needing to re-plan [for deploying the updates] for next month,” said Goettl when asked how the missing month would affect IT administrators.

“Is it [having an impact?] I’d say yes, it is, given the vibe I’m getting from my peers,” Bradley said.

Without February’s patches, security researchers have said, some unprotected systems may be compromised by exploits of now-known vulnerabilities.

Agreeing, Bradley ticked off several obvious ones. “We now have a potentially ticking time bomb on our hands as we’re not expected to get [this month’s Adobe] Flash update on our Windows 8 and Windows 10 [PCs] until March,” she said. “We have a SMB zero-day denial of service [vulnerability] we now need to investigate mediations for.”

The latter Windows vulnerability went public Feb. 2; a patch was anticipated in the now-canceled batch that was to ship Tuesday.

And come March, there’s a chance that the increased size and complexity—two months’ worth of fixes rather than one—could toss a wrench into the works. “The [update], when it arrives, at least for the pre-Windows 10 versions, may have twice as much change in it, and most likely, twice as much a chance of breaking something,” contended Goettl.

For all the complaints from patch professionals like Goettl and Bradley, as well as IT administrators and Windows users in general, the snafu—whatever its cause—will not change Microsoft’s fortunes or in a material way, even its reputation.

“We have no choice to accept [how things are] if we are running Windows,” said Bradley, voicing the reality in business. But that doesn’t mean customers have to like it.

“If they don’t have a Plan B, we don’t have one either,” Bradley said.

This story, “Microsoft’s decision to scrap February security updates unnerves patch experts” was originally published by Computerworld.

source”cnbc”

Radeon Vega vs. GeForce GTX 1080 Ti? AMD, Nvidia announce dueling events at GDC 2017

radeon nano and gtx 980 ti

The annual Game Developers Conference usually maintains an intense software focus, but GDC 2017 seems to be shaping up as a hit for PC hardware enthusiasts, too. Both AMD and Nvidia have announced events taking place alongside GDC, and in fact, both are being held on the very same day—February 28.

First up: AMD, which is reviving the “Capsaicin” event that debuted at GDC 2016. Here’s what’s on tap, according to the event registration:

“The Capsaicin livestream kicks off at 10:30 a.m. from Ruby Skye, a feature-packed show highlighting the hottest new graphics and VR technologies propelling the games industry forward.”

That sure makes it sound like more Radeon Vega graphics card details are on the way, doesn’t it? And that’s bolstered by the Capsaicin page on the Radeon website calling the event “and exclusive glimpse into the Summer of Radeon and beyond!” But don’t be surprised if AMD’s hotly anticipated Ryzen processors steal some of the spotlight, too.

A March 2 GDC session dedicated to the chips enticed developers with “Join AMD Game Engineering team members for an introduction to the recently-launched AMD Ryzen CPU followed by advanced optimization topics.” Recently launched, huh? That verbiage has since been scrubbed from the listing, but during a recent financial call, AMD CEO Lisa Su said that Ryzen will launch in early March. Considering all that, a Ryzen appearance at Capsaicin 2017 seems very possible indeed.

source”cnbc”